Google and eBay Team up for Online Advertising

The deal calls for Google (News - Alert) to become eBay’s exclusive provider of text-based advertising outside the U.S.

Also, both companies are integrating Skype (News - Alert) (owned by eBay) and Google Talk to launch a new, globally available “click-to-call” advertising service that will be available through eBay and Google’s shopping and search platforms.

In a press release, Google explained that the click-to-call capability allows users to contact eBay merchants or Google advertisers directly using Skype or Google talk.

Google noted that click-to-call ads may be “particularly valuable for merchants or advertisers who may not have a website, or who currently use channels such as local directories to reach potential customers.”

“By combining the power of eBay in ecommerce and Skype in communications with Google's leadership in search and advertising, we can increase the usefulness of the Internet for shoppers, merchants and advertisers around the world,” said eBay’s president and CEO, Meg Whitman, in a statement.

The partnership between Google and eBay also includes the following elements:

Soon-to-be-available Google Toolbar with custom Skype button

Exploration of interoperability between Skype and Google talk

Plans to integrate click-to-call ads with eBay’s U.S. and international marketplaces and Google search platform

Google and eBay said they plan to start testing the text-based as and click-to-call services early in 2007, with timeframe for final roll-out not yet set.

“The specific components and timing of implementation will depend upon initial test results, and will vary by market, largely driven by local dynamics and joint capabilities,” Google said in its press release.

eBay noted that it doesn’t expect the deal, which involves revenue sharing, to significantly affect its 2006 or 2007 financial results. Specific financial details were not disclosed.

This partnership is just the latest among a recent series of cooperatives among large online companies and other related movers and shakers. For example, in May computer maker Dell teamed up with Google to offer a pre-installed Google search pane inside Internet Explorer 6, and Yahoo! landed exclusive rights to provide graphical ads for eBay.